|- Step is Taken to Further Strengthen Balance Sheet -|
Nextel Communications Inc. (NASDAQ:NXTL) announced today that it plans to redeem the remainder of its 9.95% Senior Serial Redeemable Discount Notes due 2008 and all of its outstanding 4.75% Convertible Senior Notes due 2007 during the fourth quarter of 2003. Nextel expects to deliver formal notices of the redemptions to the holders of the notes in the next few days, and would expect to complete the redemptions within about 30 days of the delivery of the formal notices.
The redemption of the 9.95% senior notes will be made pursuant to the terms of the notes. The 9.95% notes are redeemable at Nextel's option at a redemption price equal to 104.975% of the principal amount to be redeemed plus an amount equal to the accrued but unpaid interest related to the principal amount to be redeemed to the date of redemption. As of September 30, 2003, there was $999 million in principal amount of the 9.95% senior notes outstanding. On September 24, 2003, Nextel announced that it will redeem $500 million in principal amount of the 9.95% senior notes on October 24, 2003. Nextel now plans to redeem the remaining $499 million in principal amount of those notes. With the completion of the planned redemption announced today, the entire principal amount of the 9.95% senior notes will be retired.
The redemption of the 4.75% convertible notes will be made pursuant to the terms of the notes. The 4.75% convertible notes are redeemable at Nextel's option at a redemption price equal to 102.036% of the outstanding principal amount plus an amount equal to accrued but unpaid interest to the date of redemption. About $284 million in principal amount of the 4.75% convertible notes was outstanding as of September 30, 2003.
Nextel Communications, a Fortune 300 company based in Reston, Va., is a leading provider of fully integrated wireless communications services and has built the largest guaranteed all-digital wireless network in the country covering thousands of communities across the United States. Nextel and Nextel Partners Inc. currently serve 293 of the top 300 U.S. markets. Through recent market launches, Nextel and Nextel Partners service is available today in areas of the U.S. where approximately 243 million people live or work.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995. A number of the matters and subject areas discussed in the press release that are not historical or current facts deal with potential future circumstances and developments, including the planned note redemptions. The discussion of such matters and subject areas is qualified by the inherent risks and uncertainties surrounding future expectations generally, and also may materially differ from Nextel's actual future experience involving any one or more of such matters and subject areas. Nextel has attempted to identify, in context, certain of the factors that they currently believe may cause actual future experience and results to differ from Nextel current expectations regarding the relevant matter or subject area. Such risks and uncertainties include those that are described from time to time in Nextel reports filed with the SEC, including Nextel's annual report on Form 10-K for the year ended December 31, 2002 and quarterly reports on Form 10-Q for the quarterly periods ended March 31, 2003 and June 30, 2003. This press release speaks only as of its date, and Nextel disclaims any duty to update the information herein.